Mobile startup ItsOn raises $15 million from venture capitalists Andreessen Horowitz

American start-up ItsOn has raised $15.5 million (£9.64 million) in a round of funding, with most of it coming from venture capitalist firm Andreessen Horowitz.

ItsOn has created software for smartphones that can track exactly how much data mobile consumers use. The company believes this will help consumers and mobile networks alike and said its technology will power a new service for a top three US mobile provider by early next year.

The firm claims that with its software, consumers would be more fairly charged for their data usage and find it easier to make changes in their data plans if they know exactly how much they need.

Founder of Andreessen Horowitz, Mark Andreessen thinks mobile networks offer a very limited pricing plan that fails to meet growing data demands without overcharging the average user.

"Today, a large number [of customers] who don't use much data are subsidizing a small number of people who use a ton of data", he said.

He went on to say that with the ItsOn system, mobile networks can offer far more flexible range of pricing plans and allow consumers to change them more easily. For example customers would be able to buy a day of streaming videos or a week's worth of Facebook, he claimed.

Other options would include getting separate bills for those who use the same device for work and at home.

ItsOn could also exploit the potential for firms to sponsor specific types of data use. Retailers like eBay or Amazon might happily pay for high-speed access for those browsing the virtual shopping aisles.

ItsOn was founded in 2008 by former Cisco Systems executive Charlie Giancarlo and Greg Raleigh. In the past it has been funded by Verizon Communications, Vodaphone and Best Buy.

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